Ways to save money for your dream home

You might have already decided that you would want to have your dream home. You might have even shortlisted a few homes in preferred locations. Once you have planned that, you need to make financial planning to get your dream home. Here are some of the ways you can save money to achieve your target. Invest in equity linked saving schemes and other instruments to create the corpus. 

Look for the big savings

Make sure that your spending is absolutely essential. Is it necessary for you to get a new car? Do you need new dresses every quarter? If you can drive around in a smaller car or skip a vacation, you might be able to make some big savings. If you have got refunds or bonuses, you might be excited to spend the money on a new TV. Instead of doing that or buying new shoes, you could put the money away in a savings account. You might be able to get a better TV or better shoes on sale.

 

Start a savings account and do not dip into your savings

You need to have proper financial planning and that begins with a savings account. If you spend less, you would be saving more. You should, however, be realistic with your expenses and stick to your plan. Use equity linked saving schemes to earn better returns and save taxes. Also, make sure that you are paying your bills online so that it becomes easier for you to track them. You might be tempted to spend some money from the savings account and feel that a little expense would not hurt. Use only your regular account for paying bills. 

Start investing in regular intervals

You need to start investing regularly. Proper planning can help you earn good returns on your investments. There are multiple avenues you can invest in - equity, debt instruments, gold, real estate, among others. It is a good habit to invest regularly. You can start a SIP as this will create a good habit without requiring you to consciously invest money. A SIP return calculator can help you calculate how much you need to save in order to reach your target. 

Budget your expenses

Make sure that you are spending on the TV and mobile plans you need. You would be able to save a lot of money if you can get the right plans and do not splurge money. You might not need the premium channels. You can get that channel after your move into your dream house. You can even take advantage of online deals. You should even check your impulsive habits. Start equity linked saving schemes with the money that you can put aside and save regularly with that. 

These are a few simple steps that can make small and steady contributions towards your dream home. It will help you to save money, make the most of your income and get you the dream home you had always wanted.